Restructuring outfit Hilco has bought the debt of struggling music and DVD retailer HMV from the group's lenders, Lloyds and Royal Bank of Scotland, to take effective control of the brand.
The Bond Street-based distressed business specialist already owns HMV Canada, which it bought from the HMV group in 2011 for £2m. This existing relationship is set to resonate favourably with suppliers who will probably give HMV's new UK operation more favourable credit terms.
Hilco is believed to have paid substantially less than HMV's estimated £176m debt to acquire the business because the chain is in administration.
While Hilco does not officially yet own HMV - whose first store on London's Oxford Street was opened by English composer Edward Elgar in 1921 - the debt buy-out now gives it effective control.
Administrator Deloitte announced a dramatic U-turn on Monday over HMV's initial refusal to accept payment from customers with vouchers cards.
The company is the latest in a growing list of High Street names such as Blockbuster, Jessops and Comet to collapse into administration in recent months.
Set up in 2000, Hilco is led by chief executive and former accountant Paul McGowan. The company has been involved with deals and administrations including Allders, Littlewoods, Woolworths, Borders, Allied Carpets and more recently Habitat and heritage pottery company, Denby.
HMV collapsed after facing increasing competition from online music and DVD sales, and struggling with a large number of High Street stores.
On 15 January, HMV's board said 'it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect. It is the intention of the administrators to continue to trade while they seek a purchaser for the business'.
In its most recent interim financial results for the 26 weeks ended 27 October 2012, HMW Group plc reported a 13.5% drop in total sales from continuing operations to £288.6m (2011: £333.7m).
Some 4,000 jobs are still at risk.